Apple has introduced Apple Upgrade Klarna leasing in the United States, adding a new way to pay monthly for iPhone, Apple Watch, Mac and iPad through Apple’s own retail channels. Apple said the program is provided by Klarna and is available through the Apple Store online, the Apple Store app and physical Apple Store locations.
The program is a lease, not a standard installment purchase. That distinction matters because the customer is paying to use the device over a set term, with a separate payoff calculation if they later want to own it. Apple is pitching the program as another route into its hardware stack, while Klarna handles the financing mechanics.
How does Apple Upgrade with Klarna work?
Apple said Apple Upgrade offers 12-month and 24-month leases for iPhone and Apple Watch. For Mac and iPad, the terms are 24 months and 36 months.
- iPhone lease pricing starts at $17.99 per month, according to Apple.
- Apple Watch lease pricing starts at $11.99 per month.
- Mac lease pricing starts at $24.99 per month.
- iPad lease pricing starts at $11.99 per month.
Apple said customers can reduce their monthly lease payments at enrollment by trading in a device through Apple Trade In. Customers using Apple Card for lease payments can also receive 3 percent Daily Cash back, according to Apple.
The payoff math is the part buyers should read instead of skimming past the cheerful checkout copy. Juli Clover at MacRumors reported that the payoff amount equals the retail price of the device minus what the customer has already paid during the lease, with any remaining trade-in credits also subtracted. Clover also reported that Klarna is not charging a fee for the program, so a $1,099 iPhone could be leased and then purchased for $1,099 before taxes.
Michael Tsai, summarizing Clover’s reporting, described the arrangement as effectively letting a customer buy a device at list price with 0 percent interest, assuming they are willing to deal with the lease structure. That is an interpretation of the payoff mechanics, not a separate Apple claim.
What products are covered by Apple Upgrade?
Apple listed four product families for the launch: iPhone, Apple Watch, Mac and iPad. The company did not describe support for other categories in its announcement.
The program sits beside Apple’s existing trade-in and card rewards pitches, but it changes the payment path. Customers who prefer owning a device immediately may still choose a direct purchase. Customers who want lower monthly payments can lease first, then decide whether to pay the remaining balance under the payoff formula reported by MacRumors.
The main practical point is that Apple and Klarna are moving device financing closer to a lease-first model inside Apple’s checkout flow. If the reported no-fee payoff structure holds for a given purchase, the cost can resemble list-price financing rather than a marked-up rent-to-own plan. Taxes still apply, and the final numbers depend on the product, term and any trade-in credit.
This story draws on original reporting from Daring Fireball.
